VIX Volatility Daily Chart

Here is the VIX chart that you can use directly for determining stock market direction over the coming days. US markets are closed on Monday for the Labor Day holiday so after tomorrow, Friday, 8/31/18, the EOM, US stocks will not trade again until Tuesday, 9/4/18, the first trading day of September. The monthly charts receive new data points cast in stone at 4 PM EST tomorrow (Friday). It may be best to wait for Tuesday and Wednesday of next week, when the monthly charts are showing the September candlestick, to post all the monthly charts.

For the VIX daily chart above, the Keybot the Quant algorithm is tracking 13.40 as the key bull-bear level. And, as always, the 200-day MA, now at 14.64, is a key short-term stock market signal. Note how the VIX kept bumping its head up against the 20-day MA for a few days and then finally poked up through, and today fought at the 50-day MA at 13.29 in the afternoon and finally overcame this resistance which now becomes support.

Thus, if the VIX falls below 13.40, the bulls win and the stock market will resume the upside rally. If the VIX drops below Keybot's 13.40, however, watch that 50-day since price may simply want to go down to quickly back kiss the 13.29 and then move higher and regain the 13.40.

If the VIX remains between 13.40 and 14.64, the stock market will move sideways with a downward bias. If the VIX moves above 14.64, the stock market will take a large leg lower and that complacency shown from the low put/call ratios will kick into gear and send stocks sharply lower. These correlations will hold for the next few days ahead. The VIX begins trading at 3 AM EST so you can get a read on stock market direction several hours before the stock market opens for the regular session. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Monday 9/3/18, Labor Day holiday: The VIX battled at the 13.40 level in Friday trading threatening to break out higher but the bulls win with the VIX dropping to 12.86 at the closing bell. The above drama continues going forward.